WomenEntrepreneur.com: Georgina DeCarlo

Don't Let Your Opportunity Pass You By

Georgina DeCarlo — Mon, 16 Nov 2009 08:39:06

Winston Churchill said, "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty." During these difficult economic times, have you found your opportunity?

Recessions give birth to business. A recent report from the Ewing Marion Kauffman Foundation found more than half of the companies on the 2009 Fortune 500 list started during a recession. Many people who have been laid off from their corporate careers are looking for their next opportunity. I think we all realize there is no security in big business, and many people are excited about controlling their own income by opening their own business.

Buying a franchise is a great way to start your business. The foundation of franchising is teamwork. Each individual opens his or her business but has the advantage of discounts from suppliers for bulk purchasing from the entire franchise system. Marketing dollars of each unit are pulled together to make a greater impact, and each franchise owner has access to a corporate team to advise and support him or her throughout the years. Franchise units tend to be more profitable and more successful than similar non-franchise units because of this.

Warren Buffet said, "A recession is a terrible thing to waste." As our economy is starting to recover, now more than ever may be the best time to open your doors to your business. Take advantage of lower rental rates, the competitive market of your suppliers and the quality work force available right now. Don't let your opportunity pass you by.

Is Lending to Small Business Getting Better?

Georgina DeCarlo — Wed, 04 Nov 2009 12:31:07

I don't know about you, but a few years ago I was getting a dozen credit card offers each week and letters from banks begging me to borrow money. Now it is almost impossible to get a business loan or even open a new credit card account. Where is the access to capital for small business?

There are thousands of people ready to open their own business. The biggest obstacle keeping entrepreneurs from opening their doors is the lack of capital. Didn't we, the taxpayers, give billions of our money to banks? As the banks tighten their lending guidelines, I wonder how we can get the money out of the banks and into the hands of small business.

At a speech in Landover, Md., President Obama said, "There is still too little credit flowing to our small businesses. There are still too many entrepreneurs who can't get the loan they need to open their doors and start hiring.

"There are still too many who are struggling to make payroll and stay open. And there are still too many successful small businesses that want to expand further and hire more but just don't have the capital to do it," Obama said.

The International Franchise Association has been working with SBA to try to make lending more assessable for small business. The International Franchise Association welcomed Obama's support to increase SBA loan limits from $2 million to $5 million. If passed, that would pave the way for more franchise businesses to help create new jobs and set the country on the road to economic recovery.

During testimony before the House Small Business CommitteeÂ¸ Matthew Shay, IFA president and CEO, claimed changes to SBA loan programs could create 650,000 new American jobs. Shay told lawmakers that making SBA loan programs work better for entrepreneurs seeking capital to open, acquire or expand a business will allow the economy to recover faster and provide the necessary bridge to a functioning commercial lending market once the recovery is complete.

Increasing loan limits is a great first step, but banks also need to adjust their guidelines to make it possible for startups to qualify for financing. With the unemployment rate expected to surpass 10 percent, we need to help small businesses open, stay open and create new jobs.

"Of all the steps we're taking to move this economy from recession to recovery, I continue to believe that the success of our small businesses will be a foundation upon which our future prosperity is built," Obama said. "So we will continue to do whatever we can to help these businesses grow and thrive."

Want to Get Motivated? Here's a Startup That Made It Big!

Georgina DeCarlo — Wed, 21 Oct 2009 22:39:29

As interest rates on credit cards continue to rise, homes values sink and the unemployment rate increases, aren't you ready to take a break from all the negativity that surrounds us and hear something positive? I thought so.

I had the opportunity to speak with Julie Clark, founder of Baby Einstein (educational videos for babies), and I wanted to share her amazing story. It's a story of a little startup that made it big. Her story motivates me, and I hope it will motivate you as well.

Clark was a former grade-school teacher and stay-at-home mom who had a simple idea. She wanted to share her love of the arts with her baby daughter.

Taking $15,000 from savings, Clark made her first DVD in the basement of her house. She knew what her daughter liked, and she assumed other babies would like the same thing. She didn't do market research or demographic studies; she just created something she knew her daughter would enjoy.

Clark didn't think she would ever be rich. Initially she just wanted to recoup her $15,000 investment. She made 50 copies of her DVD and sent them to children's chain stores and boutiques all over the country. She never received any interest or feedback.

But Clark didn't give up. She knew that her DVDs had been a hit with her daughter and her neighbors' children, and she believed in her product.

When she was pregnant with her second child, Clark went to a children's products trade show in New York in search of a buyer for her DVD. On her second day at the show, she found a buyer from Right Start Inc., a children's retail chain, and gave that buyer her DVD. Weeks went by, and she didn't hear anything.

Clark picked up the phone, called Right Start and told the receptionist she was returning a call from the buyer. When she finally got through, Clark persuaded the buyer to watch the video over the weekend. The buyer didn't think the video was anything special--but because of Clark's persistence, she ordered 100 DVDs to market at a few stores.

"I was through the roof." Clark says. "We were so excited about selling 100 DVDs." The DVDs flew off the shelves.Clark's husband had to jump on board to fill orders and, with a lot of hard work, Baby Einstein made $100,000 the first year.That was five times Clark's salary as a teacher. The following year, sales continued to soar.

One afternoon, when Clark and her husband were in New York on business, she received a call from Harpo Studios. Clark was invited to be on Oprah, and Oprah said her DVDs were the best gift for children.

After a few years, Clark decided to work on different projects and sold her company to Disney. "There is something in entrepreneurs that makes us take the risk. If you believe in your idea, you have to keep at it!" Clark says.

"Everything happened so fast," Clark says. "Looking back it seems like a blur. It was a dream come true."

Clark is teaching again and also working on a children's book about how to deal with breast cancer. She has also developed another video series for children, The Safe Side, about stranger safety.

West Coast Franchise Expo

Georgina DeCarlo — Fri, 09 Oct 2009 15:59:07

The West Coast Franchise Expo just swept through Los Angeles, showcasing hundreds of franchise opportunities. Because of the increasing number of people laid off recently and the growing uncertainty in corporate America, self-employment is becoming very popular. More and more people are deciding to take their employment and their futures in their own hands through franchising.

The expo is a great place to discover a concept that sparks your interest and to speak one-on-one with different franchisers. The expo makes it easy to compare cost, concepts and companies all in one location. From franchises that offer a $10,000 initial investment to companies that are looking for area developers to invest in high-growth opportunities, you definitely have a variety of choices once you decide to step into the franchise arena.

"This year the show featured an impressive showing of both new and established franchise brands that are actively focused on market expansion and who invested in the expo to personally meet with qualified prospects, according to Lucia Bravo, director of sales development at MFV Expositions. "The show attracted 7,539 attendees compared to the 8083 visitors that came to the expo last year, with approximately 30 percent fewer franchisers exhibiting than last year. While we were aware that the numbers could decrease due to the economy, we expected the quality and the interest level of this year's attendees to be higher based on market trends."

"The shows exhibitors and the attendees reflected a realistic optimism and desire to move forward. Individuals who were scared of the economy last year have accepted the new world we are in and are ready to make a change," she said. "People realize there are no shortcuts to success. Many franchisers commented on the high level of interest and franchise knowledge that the attendees they met with demonstrated and how happy they were with the type of leads they received."

The franchise expo also offers free seminars that covers topics such as "How to be a multi-unit franchisee" for potential franchisees and seminars that teach existing business owners how to franchise their business.

The expo can help answer questions about who, what and why, but the biggest question (How can we access capital to start a business?) is still unanswered. Although many people are interested in opening their own business, the conservative trend in lending has really slowed down the franchise industry as a whole. More home-based franchises are taking off compared with brick and motor concepts due to the initial cost to open and the limited access to cash.

The expo consisted of approximately 40 percent food concepts and the other 60 percent a mix of children-based businesses, senior services, fitness franchises, education and business-based franchises. The next big franchise expo will be in Miami on Jan. 15-17, 2010, and in Washington, DC, on April 9-11, 2010.

If you are interested in buying a franchise, franchising your business or just need a good excuse to take a vacation to Miami, I strongly suggest you visit the next expo. It's a great way to meet some important people in the franchise industry and check out some new and exciting concepts.

Who Makes The Best Franchisee?

Georgina DeCarlo — Fri, 02 Oct 2009 11:30:54

I just read an article that claimed franchisers are targeting college graduates to be the next generation of franchisees. The article claims college graduates are attracted to opening their own businesses because they cannot get jobs in this economy. Last week I read another article that claims veterans make the best franchisees because they possess the ability to listen and follow directions. and they are usually very dedicated. An article before that claimed laid-off executives made the best franchisees. They have business skills, are career-driven and do well following a system. Young, old, military or corporate background, it matters who you are more than your background in determining if you will do well working within a franchise system.

Franchisees are a unique type of entrepreneur. They want to be their own boss and own their own business, but they also want a consultant to advise them when they meet hurdles along the way. Advice costs money. If you are a franchisee you pay for the advice, marketing assistance and the business systems in the form of royalties. You also have less control of your business and must follow certain guidelines and sell certain products or provide certain services.

The guidelines are set up for your success. If each McDonald's made its hamburgers just a little differently, it would not be the billion-dollar business it is today. Franchising is successful because Americans are people of habit and are brand-driven when we purchase goods and services. We trust brands that we see everywhere, every day. We tend to be loyal to a product or service delivered to us the same way all the time.

If you are like me and want to do things your own way and have a hard time following rules, even your own, you probably will not make a good franchisee. From my experience talking to people interested buying a franchise, if their first question is, "Can I serve my own menu?" that tends to be a sign they do not want to follow the system.

Becoming a franchisee definitely has benefits. You have a team behind you helping you be successful building and growing your business. At the same time you also have to work with certain restrictions. Franchises have worked well for thousands of people around the world; can they work for you, too?

Whom to Know in Franchising: Lisa Druxman

Georgina DeCarlo — Wed, 23 Sep 2009 09:25:22

Let's take a break from talking about franchising and talk to people who make franchising work. Welcome to my first blog for the "Whom to Know in Franchising" series. I hope to introduce you to some interesting people in the franchise industry and share with you their insight and experience.

For my first blog of the series, I interviewed Lisa Druxman, creator of Stroller Strides. Stroller Strides is the country's largest and fastest growing fitness program for moms. Druxman has more than 300 franchise units, has published a book, Lean Mommy, developed a weight-loss video series for women, started prenatal fitness classes fit for baby and is a mother of two. How does this amazing woman do it all? Well, I went to San Diego to meet Lisa and find out!

First of all, what is Stroller Strides?
Stroller Strides is a total fitness program for new moms that they can do with their babies. It includes Power Walking and intervals of body toning using exercise tubing and the stroller. But Stroller Strides is more than just a walk in a park with your baby. It is a community of women who can connect and help each other through the growing pains of motherhood.

Why do you think it has taken off so well?
Stroller Strides is a low-cost franchise, so people can open their own business without needing to get a loan. In this economy, with limited access to cash, Stroller Strides is affordable.

More important, Stroller Strides is a great business for moms. A lot of moms don't want to go back to the strict schedules of the corporate world but still want to generate an income after they have a baby. Being a Stroller Strides franchisee allows you to own your own business, have a flexible schedule--and we give you excellent support. You can even bring your kids to work. Most of our franchisees say they only work an average of three hours a day.

Why did you start Stroller Strides?
Stroller Strides was one of those "aha moments" in your life. I was a new mom on maternity leave, and every moment was precious to me. I loved working in the fitness industry but did not want to go back to work full-time in a traditional capacity. Unfortunately, I could not afford to be a stay-at-home mom. So while working out with my son, I realized that I could help other moms get back into shape if I put a class together. This would help me, too, because I didn't know any new moms and was looking for a way to connect. I came up with the name on that very walk. I started with just a few moms in my local neighborhood and word soon spread, and we grew quickly from there.

How do you advertise stroller strides for potential franchisees?
Stroller Strides has grown through word of mouth and PR. We don't advertise through typical marketing, like franchise websites. We advertise in certain magazines that fit our target market, and we buy Google words.

What do you look for in a franchisee?
All of our franchisees are moms. Being a mom is a full-time job. We look for people who cannot only handle the full time job as mom but also be able to be organized and committed to find time for work as well. We look for people with the ability and willingness to learn, a passion for fitness and motherhood and a determination to succeed!

Why did you franchise your business instead of growing through corporate-owned locations?
I believed that we had a business model that was truly turnkey and a great opportunity for any mom who was looking to have her own business.

How do you balance it all?
It isdefinitely a challenge. I get up before 5 a.m. every morning to get in a few hours of work before the kids wake up. I used to do everything! Now I have a team of 12 great employees who do excellent work. I stay focused on work when I am at work, and I focus on my kids when I am with them.

What are your goals?
I want to make Stroller Strides a household name. I also want to expand internationally and grow our program throughout Canada.

What was your biggest mistake?
Lawyers! I didn't research our first lawyer, and it cost. She didn't specialize in franchising and she didn't give me the best advice. Since then we had to redo our legal work and pay fines. It's all cleared up now, but it was very expensive. I definitely recommend using a lawyer who specializes in franchising.

Last but not least, if you could have a meeting with any executive, who would it be and why?
I hate not be original, but it would be with Oprah. I want to know her secret on how she balances her work, projects, employees, philanthropy and time for herself.

Can Too Much Growth Cause You To Fail?

Georgina DeCarlo — Thu, 17 Sep 2009 08:45:18

In a world where we are consumed by bigger, better and more, can the growth of a company make it fail? In the book Trade-Off: Why Some Things Catch On, and Others Don't, author Kevin Maney analyzes the recent decline of Starbucks and suggests that its rapid growth made it less desirable. Maney states that companies can have either one of two things, fidelity or convenience. Fidelity is the entire experience, and convenience is how easy it is to get what you want.

Starbuck's allure was that it was a hip cafÃ© out of Seattle that served great coffee and espresso beverages. Coffee from home and 7-Eleven were not special enough anymore. Then Starbucks started to grow at an amazing pace. When you couldn't drive to your office without passing 10 Starbucks cafÃ©s and minivans were lined up in their drive-thru's, it started to become less like a European cafÃ© and more like fast food. It wasn't special anymore. Starbucks was having an identity crisis; is it special to be here, or do I feel like I'm having a fast food latte? The little green mermaid started to lose her touch.

McDonald's, on the other hand, is all about convenience. We accept and, in most cases, appreciate that there is a McDonald's on every corner. McDonald's is clearly focused on convenience and its product is cheap and fast. It works. By growing too much, too fast, Starbucks traded in its fidelity and gained convenience. Unfortunately for Starbucks, the company forgot what people really wanted it for: the total cafe experience.

Starbucks is just one example of a business that has grown too much, too fast. Business is a balance. How many units can you franchise without losing what people are coming to you for? How many units can you open and still provide a quality product? In a time where the pressure is on to grow fast, slow and steady might sometimes win the race.

Need to Get More Done? Just Make These Changes

Georgina DeCarlo — Mon, 07 Sep 2009 22:40:31

In honor of Labor Day, I would like to take a break from writing about franchising and write this blog about how we work. We have all heard people say there just isn't enough time in the day. The good news is that each of us has 24 hours every day to get things done. You have the same amount of time to run your business every day as President Obama has to fix this country. It's how you use your day that helps you be productive or not.

So what can you do to organize your work day? Just like you, I always have several projects on my desk. Through years of trial and error, I have learned a few tricks on how to structure my work week to get as much accomplished as possible.

I try to divide my day into three sections; time working in my business, time working on my business and time educating myself about my business. For example, if you own a cafÃ©, working in your business would be checking inventory, scheduling employees and ordering supplies. Working on your business would be planning your marketing campaign, meeting with your accountant or returning calls. Time educating yourselfabout your business would be reading articles about your industry or business in general.

I divide each day into blocks. My first block of time is dedicated to working on my business, and I am usually returning e-mails and calls. My next block of time is dedicated to educating myself about my business by reading articles, blogs or maybe attending a webinar. Keeping up to date on your industry is crucial. Things change so fast now it has never been more important to stay ahead in your field.

The middle of my day is reserved for working in my business. Because I plan my days in blocks, I fill in those blocks as projects come up. I can glance at my calendar and see what time I have available to complete the next project. This not only helps me organize my time, but it also allows me to give realistic deadlines to each task.

The last hour each day I work on my business again. I return calls, answer e-mails and, most important, review my schedule for the next day. I check meeting times, edit my calendar for what needs to be accomplished and make sure I am prepared for the next day. If you can do only one thing to help yourself improve how you work, do this. Reviewing what is planned for the next day will reduce your stress and help you leave your work at the office.

Yes, I know things don't always go as planned. Issues pop up that must be handled right away, projects take longer than expected and people don't always get back to you on time. This is why I try to leave time at the end of the week to finish all that just couldn't be completed during the week.

Last but not least, stay focused! With phone calls, e-mails, Twitter and YouTube, it's easy to get distracted and waste time. When I find myself wondering what I should be doing next or if I feel overwhelmed, I look at my calendar and try to stay focused on getting things done, just one block at a time.

How Do I Find the Best Franchise?

Georgina DeCarlo — Tue, 01 Sep 2009 11:37:41

Like every other business, the franchise industry has changed due to the limitless access to knowledge on the internet. Before the World Wide Web, people usually researched a few concepts that they knew, liked and trusted. They would request information on four to five concepts, make a decision and open their business. The industry average has been that for every hundred leads franchisers received, they would award one to three franchises. But now it takes more leads to sell one franchise because the internet makes it easier for people to discover different franchise opportunities and request information.

Just type "franchise" in Google and you'll have more than 55 million websites to choose from. There are literally thousands of franchise opportunities available in more than 75 industries. So how can you possibly research them all and decide which franchise is best for you?

Below are the top four resources for finding a franchise opportunity. Before you start your research, read my "Franchises Are a Lot Like Shoes . . ." blog to help identify the concepts that will fit you and your goals. After you have identified what you would enjoy doing, your investment level and potential ROI requirements, start searching.

Internet search. Your first step should be searching Google and Yahoo. For example, if you are interested in opening a cafÃ©, search cafÃ© franchise and you will find hundreds of cafes available. After reviewing their websites you will get an idea of the typical franchise fees, royalty payments and support available for your specific industry. This is how most people find tumble and tea cafÃ©.
Franchise directories. directories are websites that showcase hundreds of different franchise opportunities. A few of the most popular directories are, franchisedirect.com and franchisesolutions.com. There are hundreds more directories available, so don't stop at those three. Franchise directories can give you a great selection of business oportunities in your industry, location and investment range. But don't forget; only businesses that pay to have their company listed will be on the directory. There might be a better franchise opportunity for you that is not listed on franchise directories.
Franchise brokers. Franchise brokers represent several franchise opportunities and are similar to real estate brokers because they receive compensation from the franchisor (seller), not you (buyer). But that is where the similarities end. Real estate brokers can sell any house and earn a commission, but franchise brokers only receive a commission from a franchise they have an agreement with (their commission is typically 40 percent to 50 percent of the franchise fee), so they will only recommend franchises they represent. Even the biggest franchise brokers only represent a small percentage of opportunities. If you choose to use a broker, I recomend that you continue to do your own research.
Experience. Even with the internet, sometimes your personal experience or word of mouth can give you the most valuable information about a potential business opportunity. Visit businesses you might like to own and interview the owner.

With all the choices in the marketplace come a lot of competition. Some franchisers are offering discounted franchise fees, zero royalty periods and buy-back incentives. Take these incentives into consideration, but don't buy a franchise because of them. You will be in business long after the discounts end.

After all of your research is done, make sure you choose a business you believe in and that has the potential to make the ROI you are looking for.

Registration, Filing and Free, Oh My!

Georgina DeCarlo — Mon, 24 Aug 2009 12:46:23

Now that you have planned to grow your franchise strategically, it is time to talk about the regulations and fees per state. I know what you're thinking: "More fees? I just paid more than $20,000 for my FDD."

And yes, unfortunately there are more fees. Each state has its individual regulations, fees and licensing requirements regarding franchising. In some states, there are no additional fees to register. Just compete your FDD and you are ready to start awarding franchises. Other states, like California, require you to submit your FDD, audited bank statements, pay a fee and possibly wait more than 30 days to be approved.

Why does each state have individual guidelines and fees? I assume states with higher costs will justify their fees because they review the FDD to help protect their citizens. And yes, they do review the FDDs submitted but they don't verify the information. I would think the entrepreneurs in Montana deserve the same protection as entrepreneurs in California. Ideally this process can become standardized by the Federal Trade Commission and there can be one set of regulations and fees for the United States as opposed to 50 different guidelines.

But until then, below is a chart of fees per state. States are split into three groups: registration states, filing states and free states. Registration states may also require evidence the business has a certain amount of funds. Registration states usually want to see two to three times your franchise fee in liquid reserves. Some states even require audited bank statements.

Filing states want to have your FDD on record and usually do not require evidence of funds. As you can see, their fees tend to be much lower than registration states. Free states are just that: free! Once your FDD is complete, you are ready to award franchises.

Please note these fees can change at any time, and registration and filling states also require a renewal fee every year. Remember, not only does each state have its individual fees, but it also has its individual set of guidelines. Make sure you meet with your franchise attorney to verify you are following all the rules for each state you will be awarding a franchise.

REGISTRATION STATES

California 675

Florida 100

Hawaii 250

Illinois 500

Indiana 500

Maryland 500

Minnesota 400

New York 750

North Dakota 250

Rhode Island 500

South Dakota 250

Virginia 500

Washington 600

Wisconsin 400

FILING STATES

Connecticut 400

Kentucky

Maine 25

Michigan 250

Nebraska 100

North Carolina 250

South Carolina 100

Texas 25

Utah 100

FREE STATES

Alabama

Alaska

Arizona

Arkansas

Colorado

Deleware

Georgia

Idaho

Iowa

Kansas

Louisiana

Mississippi

Missouri

Montana

Nevada

New Hampshire

New Jersey

New Mexico

Ohio

Oklahoma

Oregon

Pennsylvania

Tennessee

Vermont

West Virginia

Wyoming